You have just completed a $24,000 feasibility study for a new coffee shop in some retail space

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You have just completed a $24,000 feasibility study for a new coffee shop in some retail space you own. You bought the space two years ago for $96,000, and if you sold it today, you would net $112,000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $33,000 plus an initial investment of $5,400 in inventory. What is the correct initial cash flow for your analysis of the coffee shop opportunity?

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Fundamentals Of Corporate Finance

ISBN: 9781292437156

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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